Mda Ltd. ((TSE:MDA)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
MDA Ltd. Reports Strong Growth Amidst Challenges in Latest Earnings Call
MDA Ltd. recently held its third-quarter earnings call, revealing a strong financial performance with notable revenue and EBITDA growth. Despite facing challenges such as the termination of the EchoStar contract and delays in key programs, the company maintains a robust backlog and continues to make strategic acquisitions and investments. MDA’s recognition as a leading satellite business underscores its prominent industry position.
Strong Financial Performance
MDA Space reported impressive financial results for Q3 2025, with revenues reaching $410 million, marking a 45% increase year-over-year. The company’s adjusted EBITDA also saw a significant rise, reaching $83 million, up 49% from the previous year, with an adjusted EBITDA margin of 20.2%.
Record Backlog
The company ended the quarter with a substantial backlog of $4.4 billion, providing revenue visibility for the years 2025, 2026, and beyond. This backlog is a testament to MDA’s strong market position and future revenue potential.
Strategic Acquisitions and Investments
MDA Space has been active in strategic growth initiatives, closing the acquisition of SatixFy Communications and announcing a $10 million equity investment in Maritime Launch Services. These moves are aimed at enhancing MDA’s capabilities and expanding its market reach.
Recognition and Awards
Highlighting its industry leadership, MDA Space was named the 2025 Global Satellite Business of the Year by Novaspace. This accolade reflects the company’s innovation and excellence in the satellite sector.
Termination of EchoStar Contract
A significant challenge for MDA Space was the termination of the EchoStar contract, valued at $1.3 billion. While this poses a setback, the company expects to be compensated for termination costs and fees, mitigating potential financial impacts.
Globalstar and CHORUS Program Delays
Delays in supplier activities have affected the timelines for the Globalstar and CHORUS programs. The Globalstar satellite deliveries are now expected in early 2026, with the CHORUS launch targeted for late 2026, impacting project schedules.
Proposed Class Action Claim
MDA Space faces a proposed class action claim related to the EchoStar contract and insider share sales. This legal challenge adds another layer of complexity to the company’s operational landscape.
Forward-Looking Guidance
During the earnings call, MDA Space management provided an optimistic financial outlook, reaffirming their full-year guidance with expected revenues between $1.57 billion and $1.63 billion, marking a 48% year-over-year growth at the midpoint. Adjusted EBITDA is projected to be between $305 million and $320 million, reflecting a 45% increase from the previous year. Despite the EchoStar contract termination, MDA maintains a strong backlog and continues to explore strategic investments.
In summary, MDA Ltd.’s latest earnings call highlighted a robust financial performance with significant growth in revenue and EBITDA. While challenges such as contract terminations and program delays exist, the company’s strategic acquisitions, strong backlog, and industry recognition position it well for future success. Investors and stakeholders will be keenly watching how MDA navigates these challenges while capitalizing on growth opportunities.